Options update: Cadbury volatility low into uncertainty of Kraft's interest at higher price

Posted Dec 1st 2009 8:00AM by Paul FosterPaul Foster RSS Feed
Filed under: Options, Kraft Foods'A' (KFT)

More

Cadbury PLC (CBY) closed at $53.37. Cadbury, the world's second largest confectioner, rejected Kraft's (KFT) buyout bid on Nov. 9. CBY December option implied volatility is at 26, March is at 23, versus its 26-week average of 29, according to Track Data, suggesting decreasing price movement.

ishares NASDAQ Biotechnology Index (IBB) closed at $78.41. IBB December and January call volatility is at 19, puts are at 22, versus its 26-week average of 23, according to Track Data, suggesting non-directional price movement.

Option Update is provided by Stock Specialist Paul Foster of theflyonthewall.com.

Tags: Cadbury PLC, CadburyPlc, ishares NASDAQ Biotechnology Index, IsharesNasdaqBiotechnologyIndex, option implied volatility, OptionImpliedVolatility

Add your comments

Please keep your comments relevant to this blog entry. Email addresses are never displayed, but they are required to confirm your comments.

When you enter your name and email address, you'll be sent a link to confirm your comment, and a password. To leave another comment, just use that password.

To create a live link, simply type the URL (including http://) or email address and we will make it a live link for you. You can put up to 3 URLs in your comments. Line breaks and paragraphs are automatically converted — no need to use <p> or <br /> tags.

Symbol Lookup
IndexesChangePrice
DJIA+150.2510,058.64
NASDAQ+24.822,150.87
S&P 500+13.781,070.52

Last updated: February 09, 2010: 09:45 PM

Hot Stocks

DailyFinance Headlines

TheFlyOnTheWall.com Headlines

BioHealth Investor Headlines

WalletPop Headlines

My Portfolios

Track your stocks here!

Find out why more people track their portfolios on AOL Money & Finance then anywhere else.

  • My Portfolio
  • Create a New Portfolio

BloggingStocks Partners

More from AOL Money & Finance

WalletPop Headlines